Energy Price cap

pochase

ZolaBuddy said:

It's a gamble of course, but I don't see SVT rates falling for perhaps another 4 quarters. In fact Cornwall Insight forecasts Price Cap increases well into the second half of 2023 and I doubt we will see massive falls in unit price rates (if any) should energy prices peak. Therefore grab any fix offered now because no doubt they will rise even further into 2023

This is not a good advice.

There are fixes that are that high that they will never save you money. For example an 75p for electricity fixed tariff from Octopus. Even the Eon Next 1 Year V18 was to expensive, and now there is a V19 (have not ssen the prices here myself). There will be more fixed tariffs that are not advisable very soon.

Even fixed tariffs on the market before the latest predictions need serious consideration, but there is at least a good chance you might be able to save money.

victor2

THe BBC isn't helping matters with irresponsible headlines such as this yesterday:

Energy bills could go up before October price cap rise

You have to read the article to see they're talking about DD amounts, NOT actual energy bills.

jimjames

victor2 said:

THe BBC isn't helping matters with irresponsible headlines such as this yesterday:

Energy bills could go up before October price cap rise

You have to read the article to see they're talking about DD amounts, NOT actual energy bills.

I saw that earlier and thought exactly the same thing. It just perpetuates the myth that the DD amount is the bill. With the way prices are now headed it will be very easy for a actual usage to vary very significantly from the DD amount very quickly.

Flight3287462

Oh well it could be a lot worse here are the latest prices in Europe as of yesterday.

RG2015

Are there any rules for the price cap?

For example, is it linked to any objective measure?

Edit.

Okay, I have looked at the MSE page but it looks complicated and certainly not transparent.

Do Ofgem publish the wholesale prices upon which the cap is based?

And why do we rely upon private companies like Cornwall for forecasts?

Surely fixing now at 70p or 80p per kWh for electricity based on a market prediction is a bit hit and miss.

pochase

Flight3287462 said:

Oh well it could be a lot worse here are the latest prices in Europe as of yesterday.

I did not know that the current gas price here is already 18.5 cent. Makes you wonder how reliable this is.

MattMattMattUK

pochase said:

Flight3287462 said:

Oh well it could be a lot worse here are the latest prices in Europe as of yesterday.

I did not know that the current gas price here is already 18.5 cent. Makes you wonder how reliable this is.

That is £0.12.8 per kWh, so that might be in line with the average price if taking into account people having already fixed ahead of the price rise. 

pochase

By my calculation it is 16p and not 12.8p

BUFF

& does it include VAT (or equiv) or not? Many countries charge at higher rates for domestic energy than our 5%.

MattMattMattUK

pochase said:

By my calculation it is 16p and not 12.8p

Er.. yep, no idea how I got my conversion, obviously not enough coffee!